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Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended
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Sep. 30, 2024
Insurance [Abstract] |
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Balance at beginning of period | $ | 344,648 |  |  | $ | 663,019 |  |  | $ | 510,117 |  |  | $ | 1,038,790 |
Less: Reinsurance recoverable | (33,121) |  |  | (495,250) |  |  | (183,435) |  |  | (798,680) |
Net balance at beginning of period | 311,527 |  |  | 167,769 |  |  | 326,682 |  |  | 240,110 |
Incurred related to: |  |  |  |  |  |  |
Current year | 319,152 |  |  | 270,266 |  |  | 802,911 |  |  | 683,004 |
Prior years | (2,197) |  |  | 17,706 |  |  | (2,197) |  |  | 34,849 |
Total incurred | 316,955 |  |  | 287,972 |  |  | 800,714 |  |  | 717,853 |
Paid related to: |  |  |  |  |  |  |
Current year | 177,963 |  |  | 178,384 |  |  | 425,970 |  |  | 369,425 |
Prior years | 81,321 |  |  | (16,963) |  |  | 332,228 |  |  | 294,218 |
Total paid | 259,284 |  |  | 161,421 |  |  | 758,198 |  |  | 663,643 |
Net balance at end of period | 369,198 |  |  | 294,320 |  |  | 369,198 |  |  | 294,320 |
Plus: Reinsurance recoverable | 91,239 |  |  | 256,687 |  |  | 91,239 |  |  | 256,687 |
Balance at end of period | $ | 460,437 |  |  | $ | 551,007 |  |  | $ | 460,437 |  |  | $ | 551,007 |
During the nine months ended September 30, 2024, the liability for unpaid losses and loss adjustment expenses, prior to reinsurance, decreased by $49.7 million from $510.1 million as of December 31, 2023 to $460.4 million as of September 30, 2024. The decrease was principally the result of the settlement of Hurricane Ian claims, claims from other prior hurricanes and claims arising in the current and prior accident years. Prior year development includes changes in previous estimates for unpaid Losses and LAE for all events from prior years, including hurricanes and other claims influenced by pre-reform market conditions in Florida. In 2023, it also included adjustments related to Hurricane Irma losses with the FHCF. During the three and nine months ended September 30, 2024, there was $2.2 million favorable development, net. During the three months ended September 30, 2023, there was adverse prior years’ reserve development of $17.7 million net and $34.8 million net for the nine months ended September 30, 2023. The favorable net prior years’ reserve development for the three and nine months ended September 30, 2024 was due to the resolution of recent hurricane claims compared to previous estimates. During the three and nine months ended September 30, 2023, prior year development was the result of increased costs to settle prior year claims compared to previous estimates particularly related to non-CAT events occurring in prior years. Prior years’ claims predate the most significant recent property insurance reform legislation enacted in late 2022 in Florida and therefore have not benefited significantly from the statutory changes.

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-40/tableOfContent + Details
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